The dividend yield is a powerful metric for long-term investors who usually expect steam of cash flows in exchange for their investments. It’s the ratio between dividend per share and market price per share. It tells about the rate of dividend achieved per unit of market price at a point in time. Companies having features of higher dividend yield have the likelihood of their share price growth in the future. The dividend yield is often compared to risk-free rate and other long-term investment opportunities to make investment decisions.